Just In Time: Managing the fine edge in your inventory

Just In Time: Managing the fine edge in your inventory

SourceDay

Just In Time (JIT) is an inventory strategy that has been in place for quite some time now. After all, storing unused inventory is a waste of your company’s resources.

Of course, there are considerations when adopting a just in time purchasing strategy. Who is going to be your supplier(s)? Will your suppliers partner with you and support your JIT initiative?  How will you communicate with them when you need to issue a new purchase order, make changes to existing purchase orders, or cancel one completely? Just in time systems involve a large amount of real-time communication, which means that every part of your system must be accurate and accessible.  Those that use just in time methods for materials and manufacturing balance a razor-thin line between too much inventory and not enough.

A supply chain portal is one piece of technology, however, that can make managing just in time easier. Such a piece of software centralizes the purchase order process, making it easier for you to place orders and to see when they are going to be shipped. Supplier portals also allow you to communicate with vendors on sudden changes in your supply and demand, all without sacrificing the supply chain flow.

For example, past due orders can be quickly rectified with a message to your supplier without having to manage heaps of emails, faxes, and phone calls. Purchase receipts, order dates, and communications are kept centralized, so there is never any digging to figure out what was done and when.

If you manage your inventory using the just in time philosophy, it’s worthwhile to consider extending your existing ERP system with a supply chain portal. It’ll help your business manage its inventory flow, all without the hassle of manually placing orders or having to chase down suppliers. Communication can help save a lot of headaches, and in the supply chain world, that goes double…especially if you like to get things done just in time.

For more information on Sourceday’s supply chain management software and how it can help manage your inventory, contact us today.